Feb. 20 (Bloomberg) -- MGM Resorts International, the
largest casino operator on the Las Vegas Strip, posted a wider
fourth-quarter loss after writing off land holdings. Profit in
Nevada rose and the Macau unit declared a $500 million dividend.

The net loss grew to $1.2 billion, or $2.50 a share, from
$113.7 million, or 23 cents, a year earlier, Las Vegas-based MGM
Resorts said in a statement today. Excluding land write-offs in
Las Vegas and Atlantic City, the loss was 23 cents a share,
matching the average of analysts’ estimates.

In Las Vegas, fourth-quarter earnings before interest,
taxes, depreciation and amortization at MGM Resorts’ wholly-owned resorts grew 6.1 percent to $275 million, the company
said. MGM China’s $176 million in profit was in line with
estimates, according to Cameron McKnight of Wells Fargo
Securities who has a market perform rating on the stock.

“We believe MGM’s strength in Las Vegas will be viewed
favorably by the market today,” McKnight said in a note after
results were announced.

MGM International fell 1.6 percent to $12.54 at the close
in New York. MGM has added 7.7 percent this year as of
yesterday, compared with 6 percent for the S&P 500 index.

MGM China’s $500 million special dividend will be paid to
shareholders of record as of March 11 and distributed on or
about March 18, according to the statement. MGM Resorts will
receive $255 million, representing 51 percent.

In a conference call, MGM Chairman and Chief Executive
Officer James Murren said the Chinese subsidiary should continue
to pay dividends even as it begins construction next week on a
$2.6 billion resort on the Cotai Strip.

Murren plans to invest in new shows and restaurants while
cutting operating costs to boost profit at existing properties.
He said MGM would look to build a few new casinos in markets
where it could earn percentage returns in the high-teens, such
as Maryland and Massachusetts.

The company isn’t pursuing casino acquisitions, Murren
said, although he expects the market for those to continue.

“We had a company with significantly higher margins than
we do today and we endeavor to get back to it,” Murren said.
“We expect to show better profit growth than revenue growth.”

Land Write-Off

MGM recorded charges of $366 million related to land on the
Las Vegas Strip and $167 million on property in Atlantic City.
In both cases, the company abandoned plans to build
multibillion-dollar resorts.

“In Las Vegas we built the CityCenter, a complex that
opened in 2009 and that will probably be the last one you see
for a while,” Murren said today on Bloomberg Television.

Murren said the company would consider selling the Crystals
mall at CityCenter. MGM Resorts isn’t in negotiations to do so,
he added.

“Instead of resorts, we build new nightclubs,
entertainment complexes, improving our room product,” Murren
said on Bloomberg Television. “We have found a return on
investment for that capital is much higher than building a new
resort.”